October 4, 2019
1. Minister of the Supreme Court Resigns
The minister of the Supreme Court, Eduardo Medina Mora, submitted his resignation 11 years before the end of the period for which he was elected in 2015.
The waiver was presented in a context in which the Finance Intelligence Unity from Secretary of Finance and Public Credit is investigating Eduardo Medina Mora’s bank accounts after the US Government warned Mexico about financial transfers that did not match his income levels. Eduardo Medina Mora worked under different administrations and his resignation will give President Andrés Manuel López Obrador the opportunity to present three candidates to the Senate who will establish the designation.
El Universal: Renuncia Ministro de la Suprema Corte de Justicia
2. “Treasury will no longer grant forgiveness for taxes”: Andrés Manuel López Obrador
After the Tax Administration Service (SAT in Spanish) published documents on tax forgiveness cases that the government granted from 2007 to 2015 for just over $172 billion 335 MXN, to private companies, artist and politicians, the president Andrés Manuel López Obrador said that there will be no tax forgiveness moving forward. The president said that the practice of tax waiver was offensive, abusive and a “bad dream”
Andrés Manuel López Obrador said that in the Senate there is consensus to approve his party´s proposal to modify 28 articles of the constitution created to forbid remissions. According to the minute of the proposal, from 2007 to 2018 $400 billion MXN were forgiven in taxes.
3. ISR and IVA income drops due to the economic slowdown
The Secretary of Finance and Public Credit, Arturo Herrera, said that State income fell during august due to a lower collection of Income Tax (ISR) and Value-Added Tax (IVA) product of the economic slowdown.
Arturo Herrera said that an income drop from Value-Added Tax (IVA) could be a result of the current administration´s outstanding returns from past years, which amounted to 40 billion pesos. The Secretary of Finance and Public Credit reaffirmed that the current Government is not seeking to modify the tax framework for 2020.
El Financiero: Ingresos por ISR e IVA caen por desaceleración económica
4. Businessmen will invest in 1,600 infrastructure projects
The business leadership, headed by Carlos Salazar Lomelín, President of the Business Coordinating Council (CCE in Spanish), Antonio del Valle Perochena, President of the Mexican Business Council (CMN) and Carlos Slim, presented to President Andrés Manuel López Obrador in the National Palace, the National Infrastructure Plan.
The National Infrastructure Plan aims to promote equitable development and one of its goals is to set gas and power projects in the southeast of the Country. The Plan proposes investments in 1,600 projects for the next five years, and according to several sources, this reflects the private sector´s trust in the current administration while aiming towards a 4% average growth target by the end of the six-year term.
La Jornada: Empresarios invertirán en mil 600 proyectos
5. Morena seeks Senate support to pass mandate revocation
Morena’s support group at the Senate seeks to make alliances with legislators of other parties for approval of the reform that would allow the mandate revocation of the Federal Executive.
The alliances could become a reality after President Andres Manuel Lopez Obrador and the Morena Parliamentary Group agreed to modify the proposal in two ways: the exercise should be carried out after the intermediate elections of 2021, with the citizens in charge of initiating the proposal and not the Executive Branch. The mandate revocation reform requires a qualified majority to be approved, which means 85 of 128 legislators.